Trade Loans

MIGA’s Trade Finance Guarantee provides protection against losses resulting from the failure of a sovereign, state-owned bank or public authority to pay an unconditional financial obligation related to a trade finance transaction. Trade finance transactions are short-term loan facilities involving a borrower and a lender that importers and exporters and domestic traders use to acquire financing.  

MIGA’s guarantee protects the lender against the risk of non-payment of a trade loan by a state-owned bank, state-owned enterprise, or sovereign or sub-sovereign entity. This assists in facilitating trade and commerce and makes it possible and easier to transact business through trade.